12 ON SHAN
A PRIME FREEHOLD INVESTMENT
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CONTENTS 01 02 03 04 05 06 07 08
INTRODUCTION KEY INVESTMENT HIGHLIGHTS ASSET ANALYSIS LOCATION ANALYSIS FUTURE POTENTIAL COMPARABLE TRANSACTIONS MARKET OVERVIEW SAMPLE FLOOR PLANS
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INTRODUCTION 12onShan is a prime freehold serviced apartment located in the bustling enclave of Novena, within proximity to Novena MRT station, the upcoming Health City Novena and a short drive to Orchard Road.
CBRE Pte. Ltd. (“CBRE”), as the exclusive sole agent, is pleased to offer a 78 unit freehold serviced apartment located within one of the prime districts in Singapore. The asset is a 16-storey building comprising of 78 serviced apartments with a mix of 1Bedroom and 2-Bedroom units. The apartment sizes range from 28 sq m to 68 sq m. Facilities within the development include a swimming pool, indoor gym, garden terrace, communal roof terrace and BBQ area. The gross floor area (including the bonus balcony area) for the development is 68,048 square feet.
Other than its current strategic city location within the country’s premier medical hub, 12onShan will also benefit from the future upside arising from the upcoming Health City and the rejuvenation of the surrounding Balestier area. The whole area will encompass a complete and holistic eco-system that includes health services, research and education, commercial, leisure and public spaces. As a premier freehold serviced apartment project in a city centre location, 12onShan is perfect for different guest segments, especially for medical and corporate travellers.
The location offers great accessibility, close proximity to the Novena medical hub and is approximately 550m (7 mins walk) from the Novena MRT station.
12onShan is currently managed by a Singapore-based operator, Ariva Hospitality, but can be available with vacant possession if required.
12onShan is also only a short drive to the Central Business District and Singapore’s premier shopping belt, Orchard Road. The airport is just a 25-minute drive away.
The subject property is being offered for sale by Expressions of Interest (“EOI”) with a 3pm deadline on Tuesday 29 Oct 2019.
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KEY INVESTMENT HIGHLIGHTS SECURE FREEHOLD INVESTMENT With its political and economic stability, Singapore is considered to be a safe haven investment market globally. The asset's rare freehold status gives additional appeal and prestige to this opportunity.
FLAGSHIP ASSET Excellent opportunity for an investor and/or operator to acquire a completed operational serviced apartment development with high visibility in a very tightly held market.
PROXIMITY TO MEDICAL HUB Walking distance to many medical facilities such as Tan Tock Seng Hospital, Mount Elizabeth Novena and Thomson Medical Centre. Asset is positioned as a choice destination for medical tourists.
FUTURE ‘HEALTH CITY’ This is a Government-led integrated master plan development in Novena area to bring health care and community together. It will include health services, research, education , commercial, leisure and public spaces in one medical precinct.
CONNECTIVITY & ACCESSIBILITY Just 550m to Novena MRT station and 2 train stops to Orchard shopping belt. Island wide connectivity via major expressways with easy access to the airport and other major attractions.
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STRONG ACCOMMODATION MARKET Singapore’s status as a key financial hub and a top tourism market in the region has driven strong accommodation demand for the city. This allows Singapore to enjoy one of the highest occupancy rates in the region. Furthermore, the clamping down of platforms like AirBnB has also eased off significant pressure on the supply side which other markets with a lack of control suffer from.
SURROUNDED BY AMENITIES Located in the heart of Novena, the asset is surrounded by an array of amenities and an overwhelming selection of eateries. Shopping malls such as Novena Square, Velocity@Novena, Square2, United Square and Zhongshan Mall are all within walking distance.
ASSET ANALYSIS 12onShan is a single tower building with 78 serviced apartments. It has a good mix of 1 and 2-bedrooms. Facilities within the development include a swimming pool, indoor gym, garden terrace, communal roof terrace and BBQ area.
Legal Description
Town Subdivision 29 Lots 472T, 473A & 99702A
Tenure
Estate in Fee Simple (Freehold)
Zoning
Residential (under Master Plan 2014)
Site Area
2,058.2 sq m (approximately 22,154 sq ft)
Total GFA (inclusive of balcony)
6,321. 87 sq m (approximately 68,048 sq ft)
Carpark Lots
40 lots (31 in basement + 8 on 1st floor + 1 accessible lot)
Operator
Ariva Hospitality
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UNIT TYPE BREAKDOWN Unit Type
No. of Bedrooms
No. of Units
Approx. Unit Size (sq m)
Approx. Unit Size (sq ft)
A1A
2
7
49.50
533
A1B
2
3
49.50
533
A1C
2
2
48.97
527
A2
1
12
28.25
304
A2_A
1
1
28.08
302
A5
1
1
28.44
306
B1
2
13
50.58
544
B3
2
13
43.55
469
B4A
2
1
62.60
674
B4B
2
3
62.53
673
B4C
2
1
61.84
666
C1A
2
13
67.51
726
C2A
2
5
68.76
740
C2B
2
2
68.76
740
C2C
2
1
66.73
718
Total Number of Bedrooms
78
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LOCATION ANALYSIS
• Zhongshan Park • Zhongshan Mall • Balestier Eateries
Sun Yat Sen Memorial Hall
• Health City Novena • Novena MRT • Novena Square
05 min
07 min
09 min
BY FOOT 03 min
BY CAR
BY TRAIN NOVENA
NEWTON 1 STOP
ORCHARD 2 STOPS 12
• Velocity • Square 2 • United Square
10 min
12 min
15 min
Orchard Road shopping belt
National Museum of Singapore
• Marina Bay Sands Singapore • Raffles Place CBD Changi Airport • Marina Bay Financial Centre
SOMERSET 3 STOPS
DHOBY GHAUT 4 STOPS
CITYHALL 5 STOPS
25 min
RAFFLES PLACE 6 STOPS 13
United Square
Novena Square Novena MRT
Mount Elizabeth Hospital Novena
Novena Square 2
Tan Tock Seng Hospital
Upcoming
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12onSHAN National Skin Centre
Lee Kong Chian School of Medicine Zhong Shan Park
Parkway Health Day Surgery and Medical Centre
Health City
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SH AN RO AD
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VIEW OF THE NORTH
VIEW OF THE EAST
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VIEW OF THE SOUTH
VIEW OF THE WEST
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FUTURE POTENTIAL Singapore’s largest integrated healthcare complex is located in Novena and slated for full completion in 2030. Work on this masterplan has already commenced.
HEALTH CITY NOVENA
BENEFIT FROM MEDICAL TOURISM
First conceptualized in 2009, HealthCity Novena is earmarked to be Singapore’s largest single healthcare complex. It is scheduled to completed in two phases by 2030, with first phase slated to be in 2022.
Singapore is well known as the multi-faceted medical hub of Asia. The nation attracts many international patients every year for a range of medical care and procedures. In terms of health care efficiency, Singapore is ranked No. 2 according to an analysis by Bloomberg in 2018.
The 17-hectare modern complex will comprise key facilities such as integrated care hub, a health science school, training building and extension to National Skin Centre. The built-up area for all healthcare facilities and services in the vicinity is projected to jump from 250,000 square metres to 600,000 square metres. With the aim of HealthCity Novena to be at the forefront of new healthcare technologies, it will continue to bolster Singapore’s strong standing as a key healthcare provider for both locals and foreign patients.
Singapore also attracts medical professionals and overseas healthcare companies to share and exchange their expertise, conduct healthcare-related research and training as well as host international conferences and events. Some patients require longer term treatment and 12onShan is one of the closest serviced apartments within walking distance to the Novena medical cluster, an ideal location to service these patients.
Source: https://www.ttsh.com.sg/About-TTSH/healthcitynovena/Pages/default.aspx
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CORPORATE / MICE TOURISM According to a 2019 report from Switzerlandbased IMD World Competitiveness Centre, Singapore tops the list, overtaking Hong Kong and United States. Given its strong reputation and stability, there is burgeoning trend of global professionals setting up or moving their headquarters to Singapore each year. Singapore also attracts a strong BTMICE crowd each year, driven by the provision of world-class exhibition and convention hubs. According to latest statistics by STB, Singapore attracted approximately 2.0 million visitors, equivalent to a 14.0% growth over preceding period. With the burgeoning trend of global companies setting up their headquarters in Singapore, strong BTMICE industry and alongside with strong office pipeline, this presents an opportunity for 12onShan to tap on these growing segments.
43,240
Companies formed in 2018 – a Y-O-Y increase of 16%. Source: Department of Statistics Singapore
$3.4B
BTMICE receipts 9M18 -a 10% increase from prior year Source: Singapore Tourism Board
6.8m sq ft
GFA office space in the pipeline up until 2022 as at H2 2019 Source: Urban Redevelopment Authority
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TRANSACTION RECORD Here’s a selection of comparable hotel, serviced apartment and residential transactions in Singapore.
HOTEL With the rise of development charges since 01 March 2019, operational income producing assets is gaining strong investor interest. Ibis Novena is listed in reference to its proximity to 12onShan, however the larger key count and the small rooms makes it less of a comparable. PROPERTY
TENURE
NO. OF ROOMS
ENTRY ROOM SIZE
SALE PRICE
UNIT PRICE/KEY
Ibis Novena
Freehold
241
18 sq.m.
S$ 170,000,000
S$ 705,394
Claremont Hotel
Freehold
90
15 sq.m.
S$ 68,800,000
S$ 764,444
Wangz Hotel
Freehold
41
26 sq.m.
S$ 46,000,000
S$ 1,121,951
New Cape Inn
Freehold
76
23 sq.m.
S$ 67,000,000
S$ 881,579
Naumi Liora
Freehold
79
26 sq.m.
S$ 75,500,000
S$ 955,696
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SERVICED APARTMENT Apart from traditional hotel assets, there also has been a burgeoning interest in serviced apartment assets. The past year saw completion of two serviced apartments (ARP with hotel licence) assets, with ARP achieving a record-breaking transaction price per key of approximately $2.4 million. PROPERTY
TENURE
NO. OF ROOMS
AVG. ROOM SIZE
SALE PRICE
UNIT PRICE/KEY
Ascott Raffles Place
LH999
146
48 sq.m. to 148 sq.m.
S$ 353,300,000
S$ 2,419,863
Darby Park Executive Suites
LH99 wef 1993
75
46 sq.m. to 74 sq.m.
S$ 92,710,000
S$ 1,236,133
RESIDENTIAL Some prime residential sites were transacted in the range of $1,616 - $1,812 ppr, implying breakeven levels of close to $2,500 - $2,600 psf. We believe that this makes 12onShan a very compelling and exceptional opportunity for purchaser to build up land bank in land-scarce Novena precinct. PROPERTY
TENURE
MAX GFA ALLOWED
SALE PRICE
DEV CHARGE
PPR
Balmoral Gardens 11 Balmoral Road
Freehold
66,952 sq ft
$157M
$34.31M
$1,812
Sloane Court + Adjoining Site 17 Balmoral Road
Freehold
62,309 sq ft
$80.5M
$20.2M
$1,616
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MARKET OVERVIEW INTERNATIONAL VISITOR ARRIVALS
18.5m International visitor arrivals in 2018
+7.5%
Compounded annual growth rate of visitor arrivals for last 10 years
65.6m
Passenger arrivals at Changi Airport in 2018
Source: Singapore Tourism Board Visitor Arrivals
SERVICED APARTMENTS ROOM SUPPLY
+6%
6,514
Projected Serviced Apartment room supply growth from 2019 to 2021
Number of Serviced Apartment rooms in Singapore in 2018
Source: CBRE Hotels
SINGAPORE HOSPITALITY MARKET
86.1%
Average Occupancy Rate 7M19
$216.50
Standard Average Room Rate (ARR) 7M19
$186.39 Revenue Per Available Room (RevPar) 7M19
Source: Singapore Tourism Board
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SAMPLE FLOORPLANS LAYOUT: A2 - 1 BEDROOM
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LAYOUT: C1A - 2 BEDROOM
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LAYOUT: B1 - 2 BEDROOM
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LAYOUT: B1 - 2 BEDROOM
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TH 12 FLOOR LAYOUT
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JUNRONG TEO +65 9691 3401
Junrong.Teo@cbrehotels.com Salesperson Reg No: R050066Z
HUI YEE YAP +65 9638 2710
HuiYee.Yap@cbre.com.sg Salesperson Reg No: R041545Z
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